Ripple’s RLUSD Stablecoin Receives Regulatory Greenlight For Institutional Use In Abu Dhabi

Ripple’s US dollar-pegged stablecoin RLUSD has been cleared for institutional use in Abu Dhabi after receiving recognition as an Accepted Fiat-Referenced Token by the local financial regulator.

In an announcement today, Ripple said that the recently-gained approval will allow regulated firms to deploy RLUSD within the Abu Dhabi Global Market’s (ADGM) financial zone. This is an international financial center and free zone that is located on Al Maryah and Al Reem Islands in Abu Dhabi. 

The regulatory nod came from Abu Dhabi’s Financial Services Regulatory Authority, which oversees the ADGM. 

“ADGM is recognized globally for its robust and forward-thinking regulatory leadership, so this approval reinforces RLUSD as a compliant stablecoin that meets the highest standards of trust, transparency, and utility,” said Ripple Middle East and Africa Managing Director Reece Merrick.

“This recognition is yet another step forward for Ripple’s operations in the region, where we are experiencing surging interest in our products,” Merrick added. 

Ripple Expanding Its Presence In The UAE

The recent approval is the latest development in Ripple’s broader push to grow its presence in the UAE. 

In October 2024, the company revealed that it was pursuing a license from the Dubai Financial Services Authority (DFSA) to expand its digital asset service offering in the UAE. Later that month, the company then secured in-principle approval. 

Earlier this year, in March, Ripple went on to confirm that it had received full regulatory approval, which allowed the company to offer cross-border crypto payment services inside the Dubai International Financial Centre (DIFC). 

A few months later, the DFSA then approved RLUSD for use by companies operating inside the DIFC. This means that the stablecoin can be used for regulated activities such as treasury management and payments. 

In addition to those regulatory milestones, Ripple has also signed Zand Bank and Mamo, a fintech app, as early users of its blockchain-based payments stack. 

RLUSD Surpasses $1 Billion Market Cap Amid Stablecoin Boom

Ripple’s RLUSD was launched in late 2024, and has since soared to become one of the biggest stablecoins in the market with a capitalization of over $1 billion. 

Data from CoinMarketCap shows that RLUSD is ranked as the 8th-largest stablecoin by market cap, behind Global Dollar (USDG) and above First Digital USD (FDUSD).

Top stablecoins by market cap (Source: CoinMarketCap)

The token is issued under a New York Department of Financial Services Limited Purpose Trust Company Charter. According to Ripple’s announcement, the token has “stringent safeguards” in place. These include a 1:1 USD backing with high-quality liquid assets, strict reserve management and asset segregation, third-party attestation, and clear redemption rights. 

The recent approval for RLUSD to operate in the ADGM follows what has been a record year for stablecoins. 

The space started to gain substantial momentum after US President Donald Trump signed the GENIUS Act into law in July.  

The regulatory clarity that the GENIUS Act provided the industry saw several major traditional finance firms start to explore stablecoins. This led to the capitalization of the stablecoin market soaring to above $300 billion for the first time, according to DefiLlama data. 

Amid the boom in the stablecoin market, Tether’s USDT has maintained its dominance. Currently, the stablecoin accounts for over 60% of the market, or around $184.529 billion, data from DefiLlama shows. The next-biggest stablecoin is Circle’s USD Coin (USDC), which has a capitalization of over $75.48 billion.

UAE Passed Sweeping New Central Bank Law For DeFi And Web3

The UAE is often regarded as a hub for decentralized finance (DeFi) and Web3, given its crypto-friendly policies. 

As global regulators continue to work towards creating a regulatory framework for digital assets, the UAE passed a sweeping new central bank law earlier this week that brings DeFi and a large portion of the Web3 industry under formal regulatory oversight. 

The UAE’s new central bank law, Federal Decree Law No. 6 of 2025, regulates financial institutions, insurance business, as well as digital asset-related activities. 

The new law’s key provisions, Article 61 and Article 62, list activities that require a license from the Central Bank of the UAE, including crypto payments and digital stored value.

In practice, the law means that DeFi projects can no longer avoid regulation by claiming that they are just code. It also means that decentralization no longer exempts a protocol from compliance.